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39 Offices in 19 Countries
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HOW ARE WE GOING TO PAY FOR THAT? Raising School District Funds: - - PowerPoint PPT Presentation
HOW ARE WE GOING TO PAY FOR THAT? Raising School District Funds: - - PowerPoint PPT Presentation
HOW ARE WE GOING TO PAY FOR THAT? Raising School District Funds: Help for the Needy, Options for the Greedy, and Traps for the Unwary January 8, 2014 39 Offices in 19 Countries Todays Presenters Richard D. Manoloff Partner, Squire
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Tax Levy Options - Operating Ad Valorem Property Tax
Millage Levies
–Traditional –Phased in over time –New: “providing for school safety and security”
Fixed Sum Levies
–Emergency/Avoid an Operating Deficit –Phased in over time –“Substitute” –“Conversion”
School District Income Tax (SDIT)
Two Different Possible Tax Bases
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Tax Levy Options – PI Property Tax
“General Permanent Improvements” Specific Purpose
– Can be converted to “general permanent
improvements”
School District Income Tax
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Tax Levy Options - Combinations
- Operating + PI
- Operating + Bond Issue
- Operating + Bond Issue + PI
- PI + Bond Issue
- SDIT + Bond Issue
- SDIT + Property Tax Levy (Fixed Sum)
- OSFC Issues + Various Options
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Tax Levy Considerations & Cautions Duration
PI and current expense millage levies – any number of
years up to 5 or for continuing period of time (if PI purpose is “general permanent improvements”)
Emergency levies – any number of years up to 10 Incremental, substitute and conversion levies – any
number of years up to 10 or for continuing period of time (for dollar incremental levy, renewals only)
SDIT – any number of years or for continuing period of
time
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Tax Levy Considerations & Cautions Timing
Deadlines in advance of 90-day Board of
Elections filing deadline
– 120th day – certain bond issues – 105th day – conversion levies; combination bond
issue + SDIT
– 100th day – SDIT; combination SDIT + property tax – 98th day – certain bond issues (policy, not statute) – Emergency and substitute levies – KNOW YOUR COUNTY’S REQUIREMENTS
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Tax Levy Considerations & Cautions Timing (continued)
Renewal (elections in advance of levy expiration)
– PI and current expense levies – general election
prior to last year of collection + any election during last year of collection
– Emergency levies – primary and general election
prior to last year of collection + any election during last year of collection
Permissible Elections
– Not more than three elections in any calendar year
to include certain types of questions
– For SDIT and combination SDIT + bond issue, not
more than two elections in any calendar year and, if two, one must be general election
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Tax Levy Considerations & Cautions Voting
2/3 vote on 2nd resolution
– PI; current expense; substitute; combination current
expense + PI; incremental levies
2/3 vote on 1st resolution
– Conversion
2/3 vote on both resolutions
– Combination bond issue + property tax levy;
combination bond issue + SDIT; combination SDIT + property tax levy
Majority vote – most others Separate and distinct roll-call vote on each
resolution
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Tax Levy Considerations & Cautions Certifications
County Auditor/Fiscal Officer
– Any levy involving property taxes
State Tax Commissioner
– Any levy involving SDIT, and conversion levies
Advance Communications
– SDIT – certification will convert $ to % (rounded to
nearest ¼ of 1%)
– Emergency levies – certification will convert $ to
mills
– Bond issues – some counties will round to
hundredths, others will not; some will only round up
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Tax Levy Considerations & Cautions
- Application of HB 920 & Millage Cap
- “Rollback” Exemption
- Levy Fatigue
- Borrowing Authority Differences
- Reduction Possibilities
- Plans of Overlapping Taxing Authorities
- Problematic Proceedings
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Tax Levy Calendar for Balance of 2014
May 6, 2014
–120th day before this election was January 6,
2014
–90th day = February 5, 2014
August 5, 2014
–120th day before this election is April 7, 2014 –90th day = May 7, 2014
November 4, 2014
–120th day before this election is July 7, 2014 –90th day = August 6, 2014
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Tax Levy Campaigns
- Use of Public Funds
- Use of Public Facilities
- First Amendment Issues
- Ethics Issues
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Questions?
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Future Webinars in This Series
The Immortal Words of Donald Trump
Nonrenewals in the era of OTES. Are you ready?
Wednesday, February 5, 2014
Wuz Op?
Ohio’s New Special Education Operating Standards: What you need to know today.
Wednesday, March 5, 2014
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Thank You!
Contact us with any questions:
- Rick Manoloff: richard.manoloff@squiresanders.com
- Mike Sharb: mike.sharb@squiresanders.com